What is a Company?
The U.S. Census Bureau (2002) defines a company as follows:
“A company comprises all the establishments that operate under the ownership or
control of a single organization. A company may be a business, service, or membership
organization; it may consist of one or several establishments and operate at
one or several locations. It includes all subsidiary organizations, all establishments
that are majority-owned by the company or any subsidiary, and all the establishments
that can be directed or managed by the company or any subsidiary.”
SAP defines a company and a company code separately. SAP defines a company
as the smallest organizational unit for which legal financial statements can be prepared.
A company can contain one or more company codes, but they must use
the same chart of accounts and the same fiscal-year breakdown.
SAP defines a company code as the smallest organizational unit for which a complete
self-contained set of accounts can be drawn up. You will be able provide
data for generating balance sheets and profit-loss statements. The company codewill represent legally independent companies. Using more than one company
code allows a customer to manage financial data for different independent companies
at the same time.
For example, when a customer is deciding on its organizational structure, the customer
can use one or many company codes. Thus, if a U.S. company has components
of its organization in Canada and in Mexico, it may decide that it should use
three company codes. The company-code currencies can be different for each
component, but they would be required to use the same chart of accounts.
Creating a Company Code:
The creation of a company and company codes is usually part of the Financials
configuration, but you may need to create these on occasion.
The company field is defined in transaction OX15. It is defined as a six- character
alphanumeric string. The navigation path is IMG • Enterprise Structure • Definition
• Financial Accounting • Maintain Company.
The company code can be created using transaction OX02. The navigation path is
IMG • Enterprise Structure • Definition • Financial Accounting • Define, Copy,
Delete, Check Company Code. The field is defined as a four-character alphanumeric
string. In transaction OX02, it is possible to copy from an existing company
code and change the name, city, and country to your company details. This transaction
will update table T001.
After creating the company code, you will need to maintain the company- code
address. To do this you need to use transaction OBY6. This transaction will update
table SADR.
Assigning a Company Code:
Once a company code has been defined, it must be assigned to a number of
objects. In the IMG, there are a number of financial configuration steps that need
to be carried out. The company code can be assigned to the following:
Credit Control Area
Financial Management Area
Company
The next section follows on from the SAP structure of a company to the structure,
creation and assignment of a plant.
The U.S. Census Bureau (2002) defines a company as follows:
“A company comprises all the establishments that operate under the ownership or
control of a single organization. A company may be a business, service, or membership
organization; it may consist of one or several establishments and operate at
one or several locations. It includes all subsidiary organizations, all establishments
that are majority-owned by the company or any subsidiary, and all the establishments
that can be directed or managed by the company or any subsidiary.”
SAP defines a company and a company code separately. SAP defines a company
as the smallest organizational unit for which legal financial statements can be prepared.
A company can contain one or more company codes, but they must use
the same chart of accounts and the same fiscal-year breakdown.
SAP defines a company code as the smallest organizational unit for which a complete
self-contained set of accounts can be drawn up. You will be able provide
data for generating balance sheets and profit-loss statements. The company codewill represent legally independent companies. Using more than one company
code allows a customer to manage financial data for different independent companies
at the same time.
For example, when a customer is deciding on its organizational structure, the customer
can use one or many company codes. Thus, if a U.S. company has components
of its organization in Canada and in Mexico, it may decide that it should use
three company codes. The company-code currencies can be different for each
component, but they would be required to use the same chart of accounts.
Creating a Company Code:
The creation of a company and company codes is usually part of the Financials
configuration, but you may need to create these on occasion.
The company field is defined in transaction OX15. It is defined as a six- character
alphanumeric string. The navigation path is IMG • Enterprise Structure • Definition
• Financial Accounting • Maintain Company.
The company code can be created using transaction OX02. The navigation path is
IMG • Enterprise Structure • Definition • Financial Accounting • Define, Copy,
Delete, Check Company Code. The field is defined as a four-character alphanumeric
string. In transaction OX02, it is possible to copy from an existing company
code and change the name, city, and country to your company details. This transaction
will update table T001.
After creating the company code, you will need to maintain the company- code
address. To do this you need to use transaction OBY6. This transaction will update
table SADR.
Assigning a Company Code:
Once a company code has been defined, it must be assigned to a number of
objects. In the IMG, there are a number of financial configuration steps that need
to be carried out. The company code can be assigned to the following:
Credit Control Area
Financial Management Area
Company
The next section follows on from the SAP structure of a company to the structure,
creation and assignment of a plant.
Confused? Feel free to ask
Your feedback is always appreciated.I will try to reply Ur queries as soon as time allows.
Regards,
SAPhelpdesk
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